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5 entries

Jul 22, 2022 11:59:00 AM | LGT Beacon

LGT Beacon: Torn between two paths for the global economy

Markets seem torn between two future paths. On the one hand, we have lingering concerns of an overheating economy on the back of an ongoing demand rebound and supply squeezes – an inflationary confluence that keeps central banks rushing toward a restrictive policy regime. On the other hand, rising interest rates fuel fears of a sapping economy, with many investors now expecting an imminent recession. We take a balanced path through this challenging environment.

Jun 22, 2022 11:59:00 AM | LGT Beacon

LGT Beacon: Past monetary largesse and current geopolitics point toward stagflation

We concluded our quarterly strategy review last week, just as market volatility had spiked ahead of a number of major central bank policy meetings. Within days, these meetings confirmed that global monetary tightening is set to continue at more rigorous pace. Economic growth is likely to slow further in the coming months. Against this background, we decided to remain positioned on the defensive side.

May 23, 2022 1:50:00 PM | LGT Beacon

LGT Beacon: Time to re-deploy some cash in the markets

Following the recent surge in interest rates, we use some of our excess cash to trim our significant underweight in in-vestment grade bonds. US policy makers have already adopted a bias in favor of an accelerated tightening and markets have started to react positively to even modest indications of peaking inflation, which leaves room for a rebound in the asset class.

Mar 31, 2021 2:20:00 PM | LGT Beacon

LGT Beacon: Tactical asset allocation for Q2/2021

The reflationary macro outlook remains intact, although investors have started to worry about the interest rate outlook and its potential impact in particular on the stretched parts of the market. Against this backdrop, we refrain from adding to our equity overweight at this point. Instead, we add exposure to emerging market debt and open a long NOK position.

Feb 24, 2021 10:10:00 AM | LGT Beacon

LGT Beacon: Reflation amid signs of market excesses

Recent political events have further reaffirmed the US commitment to sustained monetary and fiscal policy largesse, which has boosted inflation and growth expectations to desirable levels. At the same time, signs of speculative excesses in some market segments and one-sidedly bullish positioning point to the risk of further occasional setbacks.